Comparison of V4 stock exchange performance
Most countries around the world are recovering from the greatest post-war crisis in history. Countries whose economies have been linked to cyclical countries such as the automotive or aviation sectors are experiencing a slow and difficult recovery, as are highly pro-export economies linked to consumer countries. Based on this logic, we can approach the development of stock exchanges during a pandemic and the economic recovery defined by stock exchanges and its representatives, which have the greatest impact on the country's entire stock exchange.
The Slovak index is represented by Tatrabanka, VUB, OTP, Tatry mountain resorts, SES Tlmače, Best Hotel Properties and Biotika. The first three companies are banks that are currently having a difficult time without any positive outlook yet. The reason is zero interest rates and the increasing risk of default on loans, based on which they must create reserves. Another is TMR, which had to close its departments and faced a loss of profit. On the other hand, the pharmaceutical company Biotika, as one of the few sectors, did not weaken, it even strengthened its market position. Despite expectations of a massive drop, the index fell by about 11.7% and then rose and ended with a slight drop of 5.6%. The current problem of the Slovak stock exchange is low liquidity, based on which the index is not an authoritative indicator of the development of the Slovak stock exchange.
The stock market of our southern neighbours of Hungary fell by 35% during the pandemic, then strengthened and is currently around 19.7% since its pre-crisis situation. OTP banka with the largest share in the index accounts for up to 36% and still has not reached even 50% of its then value. In second place is Richter Gedeon, who beat its highs by 6%, and third is MOL, which is 29% below its highs due to weak oil demand.
Another selected stock exchange is the Warsaw Stock Exchange, which fell roughly the same as the Hungarian stock exchange. Due to the high diversity of companies, the stock exchange rose and ended with an 8.6% decline. The largest share is held by the well-known technology company CD Projekt with only 9%, which is currently traded at a 24% higher value than before the outbreak of the coronavirus. The second is the PKO bank with a high and current decline, but the third is the copper producer KGHM Polska Miedź, which recorded an incredible increase of more than 42% compared to the pre-crisis state.
The last and world's best-known and most liquid is the Prague Stock Exchange, which showed a 31.7% decline, but increased and is hovering at only 4% of its pre-crisis value. It has the largest share on the AVAST stock exchange, which fell by as much as half, but subsequently reached its pre-crisis level and even strengthened by 1.16%. The second-largest position is held by ČEZ, which is still losing 5.6%, and in third and fourth place are Erste bank and Komerzbank, which are still losing more than 35% to their pre-crisis level.
The content of this material constitutes marketing communication and should not be considered as any type of investment advice and/or investment research and/or a solicitation for any transactions. This material was prepared for informational/educational purposes only and does not imply an obligation to perform investment transactions nor does it guarantee or predict future performance. BCM Begin Capital Markets Cy Ltd and its relevant persons including affiliates, agents, directors, or employees do not guarantee the accuracy, validity, timeliness, or completeness of any information/data provided by third parties and assume no liability for any loss arising from any investment made based on the said information/data. Past performance is no guarantee of future results.